I just created a new AdGroup yesterday, and noticed all keywords start with status "moderate".
I am just curious when and how often this status is recomputed.
Somewhat related: your CPC and position are determined based on your CTR. Is it only the ctr on Google that matters?
Thanks,
Gert
The BidRank formula for positioning your ad is:
CTR X Max CPC
Where CTR is the CTR for the individual keyword matched to the search. It is based on Google searches only not the license for fraudsters to print money network (sorry I meant content network). New keywords are given a default CTR of 1-2% which reverts to actual CTR after 1000 impressions apparently. This is Googles little way of making YOU PAY for trying to be more relevant. You get an actual CTR of 50% but are ranked and pay as though your CTR is 2% until you get to 1000 impressions for the keyword. And of course many targeted keywords will never get to 1,000 impressions so you will pay for a very long time.
One of the terms now is labeled Strong, and it had only 11 impressions, 2 clicks (18%).
All others are still moderate (one had 1900 impressions, 19 clicks - 0.9%).
Gert